The current process allows ETFs to jump into markets that meet certain conditions without complicated requests for waivers from the regulator, and that approach has seen explosive growth from $4 trillion in 2019 to $12 trillion in 2025.
“This is designed to create a record that can be used to justify future policy changes that will allow the ETF to focus on a broader universe of assets,” TD Cowen policy analyst Jarrett Seaberg said in a note to clients. He said the broader range of ETFs could include “event contracts, those based on crypto assets and single-stock strategies.”
Atkins’ SEC has prioritized the adoption of new technologies, particularly cryptocurrencies, for which it is working on key policies to allow innovations such as the tokenization of securities. Meanwhile, its ETF stance may also be reconsidered.
According to the SEC’s request, “Market participants have raised questions about whether new ETFs with a principal investment strategy of investing in assets that are not securities under the Investment Company Act are investment companies.” It also asked questions about the time period in which ETFs become effective and what must be disclosed during the process.